DENVER – Frontier Group Holdings, Inc. (NASDAQ:ULCC), parent company of Frontier Airlines, reported a wider-than-expected loss for the third quarter of 2024, while revenue fell short of analyst estimates.
The ultra-low-cost carrier posted an adjusted loss of $0.05 per share, $0.02 worse than the analyst estimate of a $0.03 loss per share. Revenue for the quarter came in at $935 million, missing the consensus estimate of $943.3 million.
Total operating revenue increased 6% YoY to $935 million, driven by a 4% increase in capacity. Revenue per available seat mile (RASM) rose 2% to 9.28 cents compared to the same quarter last year.
"Our revenue and network initiatives began to overcome oversupplied industry capacity as evidenced by RASM which inflected positive by mid-August," said Barry Biffle, Chief Executive Officer.
Frontier's adjusted pre-tax loss margin was 1.1% for the quarter. The company noted that Hurricane Helene impacted results, reducing revenue by approximately $5 million.
Looking ahead, Frontier expects fourth quarter capacity to decline 2-3% YoY. The company forecasts an adjusted pre-tax margin of 0-2% for Q4, including an estimated 2% impact from Hurricane Milton.
For the full year 2024, Frontier anticipates adjusted CASM (excluding fuel) on a stage-length adjusted basis to be down approximately 1% compared to 2023.
As of September 30, Frontier had total liquidity of $781 million, including $576 million in unrestricted cash and cash equivalents.
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